outsourcing for profits | outsource php development services

23
EXCLUSIVE GUIDE How can OUTSOURCING Projects multiply your business profits?

Upload: eluminous-technologies-pvt-ltd

Post on 15-Jul-2015

136 views

Category:

Technology


3 download

TRANSCRIPT

EXCLUSIVE GUIDE

How can

OUTSOURCINGProjects multiply your business profits?

Facts

Michael Evans predicts that “Outsourcing for consumers will become a huge growth industry in

2015 as people become willing to pay more to preserve their personal time.”

As businesses begin focusing on their core competencies, outsourcing will gain even more traction and emerge as a key

growth industry in 2015.

GLOBAL OUTSOURCING MARKET SHARE

India Canada China Mexico Phillipines All other

37%

27%

5%

2%

15%

14%

What all can you Outsource?

Category Activities

Web Development services

• WordPress site development

• Joomla site development

• Drupal development

• Magento web development

• eCommerce web development

solutions

• Responsive website development

• Web Designing

Mobile App Development Services

• iPhone App Development

• Android App Development

Internet Marketing & Online Support services

• Virtual Assistance services

• Search engine optimization services

• Social media marketing services

• Accounts & Bookkeeping

One can literally outsourcing every possible task that is been carriedout in their business. But as we are talking about the webdevelopment industry, here’s the list of activities that one canoutsource to the Web development service providers. It saves time,money & you get a quality output while focusing on core businessareas.

Employee Engagement Stats

There is quite a lot of engagement & execution gap between your company & your employees

13%

Of employees actively engage in their work

ONLY 60%

Of employees don’t understand company’s goals

10%

Of employees (in reality) achieve these goals

AND

… and therefore companies outsource.

Outsourcing the Web Development projects basically means asking a third-party Web development Companies to work for you on a contractual basis.

Following are the main reasons of Outsourcing:

Reasons for Outsourcing

1) Multi-skilled experts to choose from: When you outsource, youget the Programmers who has the proficiency to work on multipledomains and who can complete your projects considering both-technical and commercial aspects. The service providers offerprogrammers are specially trained to understand our client’sprojects from various point of views.

2) Lets you focus on your core business purposes: Outsourcing is agreat option when you are stuck in the middle of core businesspurposes and a development project to achieve it. Your workloadincreases everyday and if you decide to implement thedevelopment project internally, the quality of your core activitieswould suffer as your business grows. Outsourcing in suchscenario to a third party company always plays an important role byallowing your key resources to focus on primary business activities.

3) Get experienced resources at a better cost: Whenever we are illor need a health advise, we choose doctors looking at theirexperiences and not their percentage in exams. Likewise, while youhave to find out a good programmer, you will always go for the oneswith good experience and not those who are with good numbersbut lesser experience. It is very difficult to hire an experiencedprogrammer in a non-web development company thereforeoutsourcing is a great option. An in-house programmer will alwayshave an isolated atmosphere for his personal and professionalgrowth. Thus, outsourcing the web development projects wouldlikely help you to find out the best of the programmer who arehighly experienced in their domain.

4) You don’t need to maintain any office nor have to pay salaries:This is one of the best value of outsourcing to web developmentcompanies. When you hire the programmers on project basis, younot only hire the programmers but his workplace, his perks and allthe things related to him. This releases you from responsibilities likesetting up a proper office, maintaining it and paying them regularsalaries & variables. The main concern is usually faced by the non-ITcompanies if they hire developers internally. If there is no work forthe developer, which ofcourse happens at times, company still haveto pay them a salary. This doesn’t happen when you outsource. Youjust have to pay for the exact time you utilized the resources.Indeed a cost & time savior option.

5) Flexibility in working hours: Outsourcing service provider enterthe market only after they have resources who are comfortable towork as per the customers time zone or on preferred timings. So ifyou are concerned about the timing of the programmer, be assuredthat the web development companies from where you would hireresources will assign the developer at your convenient hours. Youmay also opt out for different hourly packages so that wont have topay for the entire month. This creates a flexibility in working hourswhich results to a quality work at a lesser cost.

6) Target driven & Goal oriented resources: There is a widedifference between an in-house resource and the external oneswhen it comes to achieving goals. No doubt every employee workswith his best efforts in every task, however the survey says that theemployees who interact with the customers directly are 60% moreproductive than those who work for in-house projects. As they haveto prove their quality to a third party organization, they focus onthe quality & and consistency of their work and try to finish itbefore the given time. achieve their targets on time.

Reasons for Outsourcing

Behavioral Aspects of various Countries for Outsourcing

There are many countries where the employment cost is less andwhere the countries are willing to outsource. Some of them arePhilippines, India, Pakistan, Bangladesh, Sri Lanka etc. Lets find outtheir behavioral aspects when you outsource them a project.

1) Philippines: Philippine market has started developing just sincefew years. It doesn’t have the strong experience in the field ofoutsourcing but due to increasing opportunities, they areexpanding in this area. When you outsource in Philippines, the firstthing you experience is the qualification and domain expertiseissue. There are no doubts in the facts that there are some highlyqualified people, but majority is the fresher level. It will take atleastnext 5 years for Philippines to become a strong outsourcing marketalike India. One of the disadvantage of outsourcing to this country isthe natural disaster. They experience around 20 typhoons each yearand among that atleast 5 are devastating. This causes a delay indelivering the services to the partners on time.

2) Pakistan: Pakistan is another market after India which is chosenby the world for outsourcing. There is no reason one should nothire resources from this country, they are good at qualification,experience and they have got a zest to learn. They are one of theemerging market in the world of outsourcing. One of the differencethat you will find is the communication gap between you and theoperator. As English is not one of the first language of people, thereis slight difference in what you say and what the operatorsunderstand. The employment cost is lesser, however the qualitymay vary based on the company you select. Survey says there is anon-time delivery issues in the Pakistan outsourcing industry, but theexperiences vary.

Behavioral Aspects of various Countries for Outsourcing

4) India: Various global surveys says that India is the largestoutsourcing market of the world. Why is it that the world is keen tooutsource their project to India? Well, the reasons are: loweremployment cost, high quality, and zest to acquire and innovatelatest technologies. It doesn’t mean every company in India woulddeliver the similar level of services. Due to good education facilities,employment opportunities and keenness to innovate, India hasbecome the number one outsourcing country in the world.Language was a concern till 2008, but after realizing the problem,people have started learning English and communicating with theclients in the language that they prefer. Another advantage ofoutsourcing in India is the time zone. There is difference of about12 hours between the western countries and India, therefore whenthey work, you sleep and when they sleep, you work. The ITcompanies has this trends of night shifts, so you can utilize theresources for both- night and day shifts.

3) Sri Lanka: Sri Lanka is not much popular in this market, but sinceit has more opportunities and less employment cost, it is now beingcounted in the list. Whether it is about the labor cost or theoperational cost, it is nominal at everything that is related to yourpockets. However, you won’t see any compromise with the qualityof services that they deliver. The only concern with the Sri Lankanmarket is that their trends are completely opposite of the westerntrends. So you may not always experience a fully updated productor service from the people. It takes atleast 6 months to 1 year forany technology or trends to reach the Sri Lankan market andtherefore it reflects the services that they deliver. You cannotexpect a latest generation systems or updated products with theteam which might affect the quality.

How do Indians reacts to Outsourcing?

Many companies in USA & UK used to have less confidence inIndian companies due to their “over commitment and underdelivery” nature. There were also multiple incidences when thecompanies have taken full payments and delivered nothing inreturn. However, to satisfy the growing employment needs ofIndian population, companies have started signing the legalcontract with the companies who outsource their projects to them.This will make sure that the service provider will complete theagreed task and the other party will pay a complete amount inreturn. We are not saying it because we are Indians, but becauseIndians have got a zeal to convert any impossible thing to possible.It also has the largest share on the web development communitiesthroughout the world.

There are different factors on the basis of which the Indianoutsourcing market is dependent. Following are a few points:

1) Indian resources working in IT companies are highly qualified,the only thing is that they are one step behind theirdesignation. Experiences may vary, however most of thesoftware engineers in India underqualified for the responsibilitythey carry.

2) In order to earn projects, many companies overstates theircapabilities. For e.g., even if any specific expertise isunavailable or impossible, they wont say “No” in the first shot.They will try and spend some time on it, and then respond toyou saying it is not possible. This utilizes your time, their timeand your money.

How do Indians reacts to Outsourcing?

3) Many times, when you want to hire the resources, one persongives the interview while other person actually works on it. Thisaffects the quality and you don’t actually get what you have paidfor.

4) You will also face an on-time delivery issue. While signing upfor the project, they give a specific time for project completion,however the actual time differs by 15-20 days. This is just a genericcase, it may not happen with every company.

5) Another factor is the cost factor. There is no secret to the factthat the salaries of senior level employees in India areskyrocketing. Therefore to reduce the cost, companies prefer tohire fresher and expect the same level of work done by them. Thishampers the service quality and time as well.

How to earn maximum returns by outsourcing to India?

On the previous page, we saw how do Indian companies react tooutsourcing. But there is a way one can achieve maximum returnsby outsourcing to Indian companies.There are different factors on the basis of which the Indianoutsourcing market is dependent. Following are a few points:

• Find out experienced companies over reputed: There are twotypes of companies in the industry, one who keeps onpromoting itself to be the best in crowd while the other claimsto be experienced in the industry. It is recommended to chooseexperienced provider over reputed companies, as it is said“Experience is the teacher of all the things”. An experiencedweb development company will always suggest you the bestways to start & finish your project. They always strive hard todeliver a high quality project in a lesser time as theirexperience cuts off the R&D costs.

• Hire dedicated resources: If you have a Web Developmentproject that is surely going to take more than a month to finish,I would suggest you to Hire Web Developer from a companywho has experience in this field & has a good past record. Thiswill save your money & plus the project will be finished on timewith a good quality. A goodwill is more important thananything else for these service provider and thus they go anextra mile to deliver a quality project within a given time at afixed cost.

• Take Video interviews: To make sure the same person youinterviewed is working on the project, speak to that person onSkype instead of just calls.

How to earn maximum returns by outsourcing to India?

• Find out innovator, not just a follower: An innovator will alwaysfind out ways to add a value to the project while the followerwill just do what you have asked for. Innovative thinkers willseek for ways to reduce the development time & cost whilemaintaining the same level of class. A follower may finish theproject in time, but the chances are that you will end up havinga project that might be already implemented by various othercompanies.

• Use PMS (Project management system) to track project status:Almost every company offers the PMS nowadays. Make sureyou access it whenever you get time so that you will be updatedwith the daily/ weekly status of the projects. You can access itfrom anywhere in the world. So this is the easiest way to gainmaximum output from the resources you hire. Plus it also showsyou the screenshots of the person who is working on yourproject. So also don’t get fake set of reports.

• This will reassure you that the similar person will work for yourproject throughout. It is one of the best ways to avoidmisunderstanding and to get a high quality project from theperson you hired.

• Take time for to find and evaluate: For some developers, it’snot always about the money, but perfection in quality & on-time delivery is what satisfies them. Find them out. You willneed to hunt for passionate developers who will charge you adecent amount but will take your project as a challenge andexecute it in the finest manner. Don’t hurry up while finalizingyour web developer, take time, find good people. You will surelyexperience the best output.

Your Outsourcing options.

Outsourcing has different levels. It can be a minimal task of an houror it can be done for yearly contracts. It depends on what level youwant to take it to. Following are some of the types of outsourcing:

1) Outsourcing an entire department: It is also called asoutsourcing a process to third party. This can be implemented whenyou don’t want to form a department from scratch for a particularbusiness cycle or don’t want to invest much time in it. For e.g., youare a non-IT company and you want people to work on webdevelopment tasks for you or work on regular maintenance etc.then you can outsource your entire web development process to athird party service provider who is well experience in the field &guarantee to fulfill it. They will analyze, research on better ideas,develop it, test it, validate it from you and then publish it for you.It’s a great way to save time, money and gain more productivity.

2) Outsourcing a development project: This is when you just haveone or two projects to be outsourced. You can outsource variousprojects to companies on contract basis, once the project contractgets over, you may not need to get in touch with the other party. Asit does not need any intervention from your company, you can focustowards business growth.

3) Outsourcing just an assignment or small job: It is when you justcant find out time to complete a small assignment or extra work.There are many companies in market who offer virtual assistanceservices so that you can assign your extra tasks or assignments tothem. Mostly, companies from India, Philippines, Pakistan, Sweden,Italy offer the virtual assistance services as their employee rates arelow as compared to US, UK, Australia etc. There are minimalcharges for outsourcing these tasks, so you can either opt in forhourly packages or can hire their resources for an entire month forcouple of hours as per your requirements.

4) Hire remote resources: There are many companies in the marketwho offer resources on hire. They vary as per the different industrysectors. As we are discussing about programming, there are manycompanies in Asia & Europe who offer programmers & softwaredevelopers on hire. The purpose is to save time required forrecruitments & selection and cost required for managinginfrastructure and salaries. You can hire the resources wheneveryou have the projects and can discontinue when you don’t.

Your Outsourcing options.

Question to identify your Outsourcing needs.

It is quite obvious for every person to think why should I outsource,do I really need outsourcing or an in-house resources would be justfind for me? The solution is to think over some doubts for sometime and find out the answer.

1) What business sector do you fall in?2) What are your core business areas?3) What size of business do you own – Small, medium or large.4) What are your annual business goals?5) Is there any work that is not a part of your business process?6) Is there anything that is time consuming and you find the need

to be outsourced?7) Where can it be outsourced?8) Is your focus more on quality or pricing?9) Do you need to outsource the process, a project or a task?10) For how long do you figure out the need for outsourcing?11) If you outsource, who will interact with the other party?12) Is the other party available in your time zone?13) What are your expectations from your outsourcing partner?14) Is the outsourcing company in your budget?15) How will you measure the performance of the outsourced

factor?16) What billing cycle are you comfortable to pay in?

How to manage risks?

Nothing is possible in any business without taking a risk. The onlyway out is to find and follow a risk management plan. Beforestepping into any new venture, you should make sure you have aplan to overcome the risks. Following are some factors that canhelp you manage the risks which Outsourcing your webdevelopment projects:

1) Design a risk alleviation plan: To avoid business risks throughyour outsourcing partners, always make sure to check thebackground of them and design a strategy to avoid a few riskysituations. They may include a sudden breakdown of theoutsourcing company, extremely poor service delivery, changein management etc. Find out if the company has enough capitalto continue offering quality services atleast for 1 year even inworst conditions and go ahead.

2) Check if the company offers post delivery support: Many timesthe problem appears when your project is done, you pay thecomplete amount to your outsourcing partner and you find abug in the product. When you ask them to check in the issue,they refuse to check or ask for extra money. To avoid thissituation, always verify if the company offers a post deliverysupport and a good testing service. This will avoid your extracost of bug resolving and testing in case they don’t offer suchservice.

3) Pay according to project phases: Understand how is thepayment structure of the other company that you are dealingwith. Whether it is upfront payment, 50% payment beforeproject or in project phases. It is always good if you payaccording to project phases.

How to manage risks?

4) Secure your intellectual property: When you are dealing withcodes and web development projects, there is always a risk ofstealing the code. It is, in no manner, an acceptable fact. To avoid it,you should always sign a contract against stealing of intellectualproperty. With this, the other party would have no right to reusethe codes and sell your project to any other party. So always keepyour codes and intellectual property which is with the other partycompletely secure. Also verify if the server on which the codes arehosted are completely secured and encrypted. This will protect yourcodes safely.

You get to check the quality of every phase and only then you canrelease the payment of the project. This way the company won’t beable to mislead you under any circumstances. You will always be ona safer side and the money spent would be worth to the results.

About eLuminous

COMPANY BACKGROUND:

• eLuminous Technologies is established in 2002.

• Member of STPI (Software Technology Parks of India)

• Registered with DGFT (Directorate General of Foreign Trade )

• 100% EOU (Export Oriented Unit) by Govt. of India

Developing Mobile &

Web Solutions with

latest technologies,

standard processes,

committed support

and consulting which

brings growth &

success for our clients.

To be a world class

innovative and

progressive IT

company having

branches across the

globe by 2016.

• Commitment

• Honesty

• Co-operation

Our Mission Our Vision Our Values

About eLuminous

• Project Confirmation • Thank you email from sales• Forward project docs and

client details to Project Manager

1

• Welcome email from project manager to the client within 24 hours

• Creation of project in PMS (Project Management System)

• Introduction of TL/team and contact sharing with client

2

• Check pre-requisites for the project (demand if not found)

• Sharing of documents like RUD and project plan with client

• Conducting milestone/project review meeting

3

• Update client to check progress via sharing dummy links

• If client does not give timely response, inform sales team

• If client gives timely feedback, work on feedback and update client

4

• Perform final testing• Launching beta version on

client's server

• Final Delivery • Update sales team (ask for

CSI- Customer Satisfaction Index)

• Site maintenance

5 6

Services offered

Eluminous technologies is an Indian company having an 12 years ofexperience in offering personalized Website design, WebApplication/ Software Development & Mobile Apps solutions, &Virtual assistance services & SEO services helping clients across theglobe. Honesty, Commitment and Co-operation are core valuesof eLuminous Technologies and we are living upto these core valuessince the inception of the Company. Our Developers not onlyexecute every project with a finest quality on the given time, butthey try to become a part of your business success. We offer thefollowing services for Outsourcing:

Web Development Services:1. WordPress Development Services2. Magento Web Development Services3. Joomla Development services4. Drupal Web development5. Responsive web designing services6. Web designing services7. eCommerce development services8. Custom project development9. Mobile website development10. Social Networking website development.

Services offered

Mobile Apps Development

1. iPhone Apps development2. Android Apps Development

Internet Marketing & Virtual Assistance:

1. Search engine optimization services2. Social media marketing3. Mobile website marketing4. Mobile apps marketing5. Virtual assistance services.

Our Process

Client sends us his requirements.

Requirement analysis and consulting.

Proposal is sent along with inputs.

If proposal is approved, we

schedule interview.

Video interview with the developer who will actually work.

Development process is initiated based on

phases.

Project execution hierarchy is set and

communicated to client.

Tasks are prescheduled and tracker details are

sent to client.

Reports & status is acknowledged by clients

through the PMS .

Get in Touch

Address :B-2,Sanmitra Building,Opp NBT Law College,

College Road,Nashik, Maharashtra, India –

422005

Tel :+1 646 688 [email protected]:eluminoustechnologies

Address: "TAACT”, 502, Pushpamangal Commercial Complex,

Near Babubhai Petrol Pump, L.B.S. Marg,Thane West – 400 601.

Phone : +91 22 21723177